Vietnam’s PMI in December strengthened for 13 consecutive months. Photo: Internet
The Nikkei Vietnam Manufacturing Purchasing Managers' Index, or PMI
, slipped to 52.4 in December from an 18-month high of 54.0 in November, but marked strengthening in manufacturing operating conditions for the 13th month in a row.
A reading above 50 – the neutral threshold – indicates economic expansion, while a reading below 50 points toward contraction.
Thanks to higher new orders, manufacturing output rose for the twelfth time in the past 13 months during December, albeit at a weaker pace than in the previous month. Consequently, manufacturers increased staffing levels for the ninth successive month.
“Solid growth in the final month of 2016 completed a generally positive year for the Vietnamese manufacturing sector. Local firms continue to be able to secure new work, with a joint-record rise in new export business a key highlight from the latest survey,” said Andrew Harker from IHS Markit, which compiles the survey.
“The sector therefore seems in good shape heading into 2017, wherein IHS Markit forecasts a rise in GDP
of 6.3%,” the analyst added.